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Retained Earnings
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Retained Earnings to Total Assets =
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Total Assets
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Explanation of Retained Earnings to Total Assets:
The Retained Earnings to Total Assets ratio measures the company's ability to
accumulate earnings using its Total Assets.
Importance of Retained Earnings to Total Assets:
A high, or increasing Retained Earnings to Total Assets ratio is
usually a positive sign, showing the company is able to continually
retain increasingly more earnings. As a company grows and matures,
you should see this ratio increase.
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